Louisiana has been facing its share of state budget woes for some time. Branon Pesnell, executive vice president with Beau Box Commercial Real Estate in Baton Rouge, is suggesting that office landlords keep an eye on offices occupied by state government tenants.

“As the state government is going through all these consolidations and budget fixes, their push is to consolidate state government employees into state-owned buildings downtown,” Pesnell said at a recent “Trends in Real Estate” seminar. “I think any landlord with state tenants needs to be aware of that. Those leases are at risk because they have the ability to cancel them.” In other words, the government can cancel those leases at any time, with practically no notice.